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History of dilution from this company:
(How shares outstanding changed over time)
2017 03: 574303117 (TRTC) -> Market cap = $2,354,642,779 (share price 2017.03.24 = $4.10)
2018 03: 65319183 (TRTC) -> after 1:15 reverse split. Market cap = $261,276,732 (share price 2023.03.08 $4.00)
2020 11: 194704163 (TRTC)
2021 03: 234062627 (TRTC) + 39358464
2021 05: 236190148 (TRTC) + 2127521
2021 08: 242411734 (UNRV) + 6221586
2021 11: 445293039 (UNRV) +202881305
2022 03: 527729921 (UNRV) + 82436882
2022 05: 530331383 (UNRV) + 2601462
2022 08: 530456383 (UNRV) + 125000
2022 11: 563589795 (UNRV) + 33133412
2023 04: 693386374 (UNRV) +129796579
2023 05: 691886374 (UNRV) - 1500000
2023 08: 772483465 (UNRV) + 80597091
Note: Reverse splits by themselves may not be a big deal, but they become a huge deal when a company has demonstrated being trigger-happy in issuing new shares and using the shareholders as an ATM machine.
Decided to move what was left of my position here to another place. Them keeping the authorized shares at 990M is an expression of complete disrespect for my presence as a shareholder.
There's a website on that mail.
They want to do a reverse split 1:100 so your shares are washed out (the entire OS will be reduced to 7M) and they keep the authorized shares to 990M so they have maximum room for dilution.
https://westcoaststocktransfer.com/PROXY-UNRV/
The send paper mail notices with a control number (given you were a shareholder as of Oct 16)
They can't file bankruptcy in federal courts unless they are a holding company. Madmen is a holding company and they were able to file three banruptcies in 2020 and 2021 in a few of states.
I have never seen a stock do well after a reverse split. Basically they are telling us they are bankrupt without telling us they are bankrupt.
People need to see solid moves, not just words. (both politically, and business wise). Right now the entire sector is slumping again.
A bit unreasonable to expect $1.
The times it did that much it only had 190M shares float which corresponded to $190M market cap.
Now they are up to 772M shares float. So what used to be $1 is now $0.24
At a fraction of a cent, why does this co even bother trading at all ?
Price compression:
https://www.youtube.com/shorts/P1r08UpSnI0
You could be right.
Not happy one bit that shares trippled since two years ago. Without the Safe act, if they keep current revenues while lowering debt more, they could make it to $6c
Currently there are no buyers almost anywhere. Marimed people complain, Green Thumb people complain. Then, try to imagine Madmen holding on by the skin of its teeth.
Quote: "$MMNFF Company will need to obtain an extension or a refinancing of its debt-in-default with the secured senior lender.
In total, the Company's cash needs remain significant and primarily related or stemming to matters that precede from years past when decisions were made under the assumption of eminent federal legalization of cannabis, and not achievable under the current macro-economic conditions impacting our cash flow from operations"
As a personal assessment,
a) The banking act will eventually pass. There is increasing pressure and chatter about it.
b) There is some life left in the company since the restructuring effort and tiding up operations. Not as scary as it was a year ago. Not going to be as much a big player as Frank had us believe, but a small one (maybe up to 100M run rate and about $0.20 share price).
c) California is a regulatory mess for any cannabis operator and there's a thriving black market. That's concerning.
Based on my calculations on the Q1 2023 results:
a) Net profit margin: 4.6% (0.046) - Low bot not horrible, or negative as it used to be
b) Quick ratio: 12.1% (0.121) - Low but not horrible
c) Free cash flow: 2.7 million
They already did bankruptcy. Since bankruptcy is under Federal statue, cannabis companies cannot officially file for it, but Adnand is basically the bankruptcy reorganization company and has been doing restructuring, cost-cutting, and renegotiations with debtors and litigants as if it was a bankruptcy.
Dilution is up by almost by 300% in three years.
The most insulting is that Frank Knuttel was diluting while painting a picture of greatness.
A hydrofarm miracle only happens once. They pissed it off. They are now practically done.
So, we are back to Derek Petterson numbers ? ... and has this ever had a negative book value before ? (it maybe even worse now than DP left it)
Financial solvency seems to be irrelevant in this sector. With the Biden announcement, stocks like Green Thumb (GTBIF) and Merimed (MRMD) jumped and then dumped within three days. Green thumb is back to $10 from a high of $14.
The entire field is just day traders going in and out.
It would be funny if the company ends up dissolving, due to lack of funding to continue operations, only moments before the sector revitalizes.
All time low hit today, from this point down there is no retail investor that is green no matter how long-term their position is unless somehow they have ways to short OTC stocks. it is also extremely unlikely they'd have been able to flip this enough times to stay green, (it just doesn't have enough up days and volume liquidity to play the flip game).
An idea has been floating around that cannabis stocks will NEVER have value, by virtue that they are a cash business and they learned the black market trick of not reporting all their sales. So a number of their transactions will always be invisible (written off as spoiled inventory and such).
This way their books are still correct (since under the table transactions are invisible) but the revenues look lower for tax purposes.
Even if legalized federally, they are better off selling under the table.
If this argument is true then this is a bad sector to own stock. EVER.
Interesting move by Sabas. The new board of directors will have some diversity and will include representatives from current employees and also shareholders; bringing those viewpoints to the board.
On that Glassdoor link, the 2.2 score is for the company. If you look at the CEO icon he actually has 0% Approval. (I think Derek Peterson had 58% by his own employees)
Sabas Carrillo is the fourth interim CEO in a year.
1. Matt Morgan lasted a month and run out like the wind
2. Frank Knuttel lasted six months did some big moves but got fired (by Kovenich, I think). He was also using shares to finance operations by Dec 2021 despite the positive image he was giving to the investors.
3. Tiffany Davis lasted three months and run out like the wind
4. Sabas Carrillo (specializes in mergers and acquisitions and is the guy that did the TerraTech IPO ten years ago) ... to be seen what he does with the company. On the bright side he knows how to keep it from being delisted and knows to navigate the merging and reverse merging process.
Bernard E. Steinmann is the founder of People's ... I have a suspicion that when the litigation dust settles, he will take over the whole company. UNRV only has one important asset: public trading OTCQX, otherwise People's has no need of UNRV, they were doing fine alone. He let them fall on their greed and now is making a move.
https://www.corporationwiki.com/p/2kq0w1/bernard-steimann
Yeah, yeah, we know bud ... that's stuff I was bubbling about a little while ago. With those numbers the CEOs shouldn't be fired or quiting.
You recently got in, or did you ride it down ?
In my view it's getting sketchy. We have two CEOs being either fired or resigning within a year. There is probably some internal fighting going on. I suspect Imbimbo fired Frank and then Tiffany either couldn't hack it, or saw danger and had to leave before earnings.
In my view, given the uncertainty, it's no longer an investment, it's more like gambling. I mean the assets are real, but this company is like a drifting ship with no management continuity. Their cashflow is done, Frank started using toxic financing, they likely can't hire an outsider (any high profile CEO, would have high profile salary demands they can't afford).
Also someone posted this on the yahoo forums, that's kinda worrying:
I was wondering about that. He looks a bit frail in interviews. Is there a successor ?
CEO said in an interview, full legalization is 3 to 5 years in the future ... but banking act is closer to passing short term.
All nice and such, but the company fired the CEO that did all this. They were running out of cash and he started using toxic financing. They had an interrim CEO in the past three months that also resigned just a week ago. Currently there is no CEO. The company is in flux. If they find someone good in time then it will ne saved.
Davis resigned last week. Nobody is officially running the company. Eric Baum is the likely ranking member as cherman of the board. Why did Davis accept to be CEO if she couldn't hack it ?
https://ir.unrivaledbrands.com/sec-filings/all-sec-filings/content/0001477932-22-005439/unrv_8k.htm
House Passes Bipartisan Marijuana Research Bill, With Senate Expected To Send It To President Soon
https://www.marijuanamoment.net/house-debates-bipartisan-marijuana-research-bill-with-vote-expected-imminently-before-heading-to-the-senate/
We get to find out how good is this CEO at managing expenses, or if it's all just talk.
Unfortunately I don't see the price moving up. There are factors outside company control that seem to take priority. Those that pay attention see massive inflation in the horizon, a looming housing bubble (similar or bigger to 2009), supply chain strains, energy costs, agriculture strains due to Ukraine and fertilizer shortages ... and a looming overall shortage at the grocery stores possibly by August (that even Biden admitted). This country has never seen famine, but if anything close to it manifests, people won't have money to spend on expensive cannabis, they'll go back to cheap alcohol, or they'll chance buying pot off the street like in the past decades.
Interesting illustration: Book value per share since 2018
https://www.zacks.com/stock/chart/UNRV/fundamental/book-value
That's on page 24 of the 10Q from Monday.
Quote: California Governor Proposes Marijuana Tax Cuts To Combat Illicit Market
The governor emphasized on Friday that he was specifically committed to exploring ways to minimize the influence of illicit growers and sellers on undercutting legal, licensed businesses.
https://www.marijuanamoment.net/california-governor-proposes-marijuana-tax-cuts-to-combat-illicit-market/
They have a lot more revenue, but still spend more than they bring in. The good news is their 22Q1 net loss was $8.8M versus 21Q1 of $12M. So their losses went down 30% YoY this quarter and we are looking at an $80M run rate.
Nobody knows.
By my understanding of OTCQX rules,the latest they can file is the 20th. (They get 15 days from Q1 end plus five days late extention)
The entire sector is being sold off. The majority of cannabis stocks are near all time lows.